Entering Period Rates
You can maintain period-average, period-end, and revaluation exchange rates for any foreign currency you have enabled. General Ledger uses:
- Period-average and period-end rates when you translate your actual and budget account balances.
General Ledger performs both translation and revaluation in accordance with SFAS #52 (U.S.).
- The revaluation rate when you revalue account balances that are denominated in a foreign currency.
Note: If you change a period rate after you've already run translation, you must retranslate your account balances for the period whose rate has changed.
Warning: If your functional currency is that of a European Monetary Union (EMU) member state, you must create the EMU relationship for your existing currency before you enter period rates for any period that is the same as or which follows the period of your effective starting date in the EMU.
For example, if your effective starting date is 04/20/1998, do not enter period rates for April or May of 1998 until you have created the EMU relationship for your existing currency.
If you enter period rates first, you will have to delete those rates, then back out the effects of any journals that used the rates, before you create the EMU relationship. Otherwise, you can corrupt your General Ledger data.
See: Defining European Monetary Union Relationships.
Define and enable your currencies.
Define your set of books.
To enter a period rate:
1. Navigate to the Period Rates window.
2. Enter the Currency you want to translate To. You can choose any enabled currency except the functional currency of your set of books, or STAT.
General Ledger automatically displays the functional currency for your set of books as the From currency.
3. Choose the Balance Type to which the period rates apply. Enter Actual if you want to enter rates for your actual balances, or Budget if you want to enter rates for your budget balances.
4. Enter the accounting Period to which the rates apply. For actual balances, you can maintain period rates for any open, future-enterable, or closed accounting period. For budget balances, you can maintain period rates for any period up to the last period of the latest open budget year.
5. Enter the Period-Average rate for the accounting period. General Ledger uses the period-average rate to perform foreign currency translation in accordance with SFAS #52 (U.S.). Typically, you use period-average rates to translate income statement accounts.
Enter the rate that you multiply your functional currency amount by to determine the foreign currency equivalent. For example, if your functional currency is USD (U.S. Dollars) and you want to translate your balances to JPY (Japanese Yen), enter 126.275 if the average exchange rate is 126.275 yen per dollar.
6. Enter the Period-End rate for your accounting period. General Ledger enters the inverse of the period-end rate as the revaluation rate. If you want, you can skip the period-end rate and enter the revaluation rate directly.
General Ledger uses period-end rates to perform foreign currency translation in accordance with SFAS #52 (U.S.). Typically, you translate balance sheet accounts using period-end rates.
Enter the rate that you multiply your functional currency amount by to determine the foreign currency equivalent. For example, if your functional currency is USD (U.S. Dollars) and you want to translate your balances to JPY (Japanese Yen), enter 126.87 if the period-end rate is 126.87 yen per dollar.
7. If you did not enter a period-end rate, enter the Revaluation rate. General Ledger enters the inverse of the revaluation rate as the period-end rate.
General Ledger uses the revaluation rate when you run revaluation.
Using Period Rates with European Monetary Union Currencies
Overview of Multi-Currency Accounting